The world’s largest cryptocurrency last traded 0.7% lower at $69,454
Bitcoin ticked below $70,000 levels on Thursday, but remained supported, as investors turned cautious after oil prices surged again amid escalating war in the Middle East.
The world’s largest cryptocurrency last traded 0.7% lower at $69,454 by 06:14 GMT.
Bitcoin appears to be consolidating near the $70,000 mark as markets digest geopolitical developments.
Oil markets were the main driver of risk sentiment. Brent crude surged back above $100 per barrel after pulling back from Monday’s spike near $120, its highest level in nearly two years.
The latest escalation in the Middle East included attacks on two fuel tankers in Iraqi territorial waters and strikes on commercial vessels moving through the Strait of Hormuz, a key global oil chokepoint.
The Strait of Hormuz handles around one-fifth of the world’s oil shipments, and tanker traffic has been nearly halted amid security concerns.
Rising energy prices have revived worries about global inflation just as central banks were beginning to consider easing policy.
In the U.S., analysts say sustained oil prices above $100 could complicate the central bank’s path toward rate cuts and pressure risk-sensitive assets such as cryptocurrencies.
Bitcoin has often moved in tandem with broader risk assets in recent months, with traders wary that a renewed inflation shock could weigh on liquidity.
Investors also await local economic data for clues on the central bank’s policy outlook.
Weekly jobless claims figures are due later on Thursday, while U.S. Personal Consumption Expenditures price index — the central bank’s preferred inflation gauge — is scheduled for Friday.
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